Hertz 2012 Annual Report Download - page 152

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Pension Benefits Postretirement
U.S. Non-U.S. Benefits (U.S.)
2012 2011 2012 2011 2012 2011
Amounts recognized in balance sheet:
Liabilities ......................... $(180.5) $(183.2) $ (46.1) $ (33.8) $(19.0) $(18.2)
Net obligation recognized in the balance
sheet .......................... $(180.5) $(183.2) $ (46.1) $ (33.8) $(19.0) $(18.2)
Prior service credit (cost) .............. $ 9.1 $ 10.1 $ — $ — $ — $ —
Net gain (loss) ..................... (167.6) (160.3) (17.5) (10.7) (2.3) (1.2)
Accumulated other comprehensive loss . . . (158.5) (150.2) (17.5) (10.7) (2.3) (1.2)
Unfunded accrued pension or
postretirement benefit ............... (22.0) (33.0) (28.6) (23.1) (16.7) (17.0)
Net obligation recognized in the balance
sheet .......................... $(180.5) $(183.2) $ (46.1) $ (33.8) $(19.0) $(18.2)
Total recognized in other comprehensive
(income) loss .................... $ 8.3 $ 34.5 $ 6.8 $ 12.2 $ 1.1 $ (0.7)
Total recognized in net periodic benefit
cost and other comprehensive
(income) loss .................... $ 43.5 $ 67.1 $ 6.1 $ 0.9 $ 2.1 $ 0.5
Estimated amounts that will be amortized
from accumulated other
comprehensive (income) loss over the
next fiscal year:
Net gain (loss) ..................... $ (16.0) $ (11.1) $ (0.4) $ 0.1 $ (0.1) $ (0.1)
Accumulated Benefit Obligation at
December 31 .................... $619.2 $ 537.0 $216.8 $187.6 N/A N/A
Weighted-average assumptions as of
December 31
Discount rate ...................... 4.0% 4.7% 4.3% 4.8% 3.6% 4.4%
Expected return on assets ............. 7.6% 8.0% 7.4% 7.4% N/A N/A
Average rate of increase in compensation . . 4.6% 4.6% 2.0% 2.1% N/A N/A
Initial health care cost trend rate ........ N/A N/A N/A N/A 7.8% 8.1%
Ultimate health care cost trend rate ...... N/A N/A N/A N/A 4.5% 4.5%
Number of years to ultimate trend rate .... N/A N/A N/A N/A 17 18
The discount rate used to determine the December 31, 2012 benefit obligations for U.S. pension plans is
based on the rate from the Mercer Pension Discount Curve-Above Mean Yield that is appropriate for the
duration of our plan liabilities. For our plans outside the U.S., the discount rate reflects the market rates
for an optimized subset of high-quality corporate bonds currently available. The discount rate in a
country was determined based on a yield curve constructed from high quality corporate bonds in that
country. The rate selected from the yield curve has a duration that matches our plan.
The expected return on plan assets for each funded plan is based on expected future investment returns
considering the target investment mix of plan assets.
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